Urbify: Combating Competition with Quality and Customer Experience

The Rise of Chinese E-commerce Players

Stolze presented data illustrating the rapid growth of Chinese platforms like Shein and Temu in Europe. He said:

• Shein's estimated GMV in Europe reached $8.2 billion in 2023.
• Temu, after just one year in Germany, has 26% market penetration and delivers 200,000 parcels daily.

He attributed this success to factors like:

• Low prices, appealing to consumers in the current economic climate.
• Strong social media presence and high app engagement.
• Effective cross-selling and upselling techniques.

Challenges and Concerns

Stolze also outlined challenges associated with this trend:

• Customs loopholes and regulatory issues.
• Concerns about product quality and seller transparency.
• Significantly higher carbon footprint of air-freighted goods from Asia.

The Urbify Approach: Quality and Ultra-Fast Delivery

Stolze argued that competing on price with Chinese retailers is not a viable long-term strategy for European businesses. Instead, he advocated for focusing on:

• Product Quality: Offering superior products and a diverse range.
• Customer Convenience: Providing exceptional service and convenience.
• Brand and Luxury: Leveraging strong European brands and luxury offerings.
• Sustainability: Emphasizing environmentally responsible practices.
• Speed and Accuracy: Ensuring fast and reliable deliveries.

Urbify, operating in 80 cities across Germany and Austria, offers:

• True Next-Day Delivery: Orders placed before midnight are delivered the next day.
• Evening Delivery Window (4 PM - 9 PM): Increasing delivery success rates.
• Local Same-Day Delivery: Providing ultra-fast delivery options.

Technology and Operational Excellence

Urbify achieves its delivery promise through:

• In-house technology: A fully integrated platform for order management, delivery app, and real-time tracking.
• Operational control: End-to-end control over the delivery process.
• Customer-centric approach: A dedicated operational control centre for immediate issue resolution.

Conclusion: Building a Loyal Customer Base

Stolze concluded by urging European retailers to focus on building and retaining a loyal customer base by offering superior quality, convenience, and delivery experiences. By leveraging their strengths and differentiating on factors beyond price, European businesses can successfully navigate the evolving e-commerce landscape and thrive in the face of increasing competition.